Plus, a look at transport insecurity and poverty.
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Patagonia’s ‘reluctant billionaire’ founder uses wealth to fight climate change
Patagonia founder Yvon Chouinard has formulated a way to use his family’s net worth, currently valued at $3 billion, to fight climate change – by donating all of it. The New York Times reports that the Chouinards are transferring approximately 2% of all shares into the Patagonia Purpose Trust. The remaining 98% of the business was donated to the 501(c)(4) Holdfast Collective, a nonprofit arm of the company, ensuring the company continues to use its profits to fight climate change .
Next City Senior Economic Justice Correspondent Oscar Perry Abello Remarks these perpetual purpose trusts are not a new solution for mission-driven businesses. As it reported in 2019, Oregon-based Organically Grown was among the first pioneering companies to move beyond employee ownership to steward ownership in its efforts to protect the mission in perpetuity. .
“I hope it inspires a new kind of capitalism that doesn’t end up with a few rich people and a lot of poor people,” Chouinard told The Times. While the Times notes that the Chouinards will not receive a tax benefit for the donation, Bloomberg’s analysis concludes that the donation means the founder would avoid paying about $700 million in federal capital gains taxes he would have had to if he sold the company.
New report shows fighting poverty doesn’t have to mean displacement
According There is a way to invest in low-income neighborhoods without displacing current residents — and we already have examples, according to a new report from the Brookings Institute. The researchers found that between 2000 and 2015, 193 U.S. neighborhoods saw a large decrease in poverty without displacement.
This phenomenon was largely due to inclusive prosperity, according to the researchers, which enabled local residents to increase their wealth and the value of their properties directly in their own neighborhoods. The report finds eight total key indicators of inclusive prosperity: external indicators include lower homicide rates, low-risk displacement, and positive economic growth, and internal indicators include high homeownership rates, lower residential vacancy, increased housing density, greater self-employment and the presence of community organizations.
More than half of poor adults face transportation insecurity
One in four American adults experience transportation insecurity or the inability to get to work, school and other activities efficiently, according to data collected by the University of Michigan. And this experience is closely linked to income, with more than half of people living below the poverty line facing such insecurity.
Researchers found that the demographic groups most affected by transportation insecurity were blacks and Latinos, at 33% and 29% respectively. Transport insecurity was also more likely in urban areas, at 39%.
“Transportation safety is a critical component of economic mobility, individual well-being, and understanding how to fight poverty,” says Alexandra Murphy, co-author and assistant professor at the University of Michigan. “If people don’t have the ability to move from place to place, they will have a hard time getting to work, doctor’s appointments, school, groceries and social services. The study involved more than 187 interviews and relied on transportation index, a survey inspired by the food insecurity index.
Study finds $15 minimum wage would lift 7.6 million Americans out of poverty
Although high-cost living states like California are currently considering on a $22 per hour minimum wage for fast food workers, most other states are still fighting for a $15 per hour federal minimum wage. That’s more than double the current federal minimum wage of $7.25, which has been stagnant for more than 13 years.
A new analysis of Urban Institute now adds weight to the argument. As Business Insider reports, the institute’s paper concludes that across all demographics, 56 million workers could be impacted by a $15 minimum wage, with an average increase in income of $5,600.
Such a policy would also lift 7.6 million working people out of poverty, with the greatest possible gains for Hispanic families, according to the Urban Institute. The group could see an average increase in income of $5,900, with family resources increasing by about $4,500.
Marielle Argueza is an intern at INN/Columbia Journalism School in Next City for Summer-Fall 2022. She is a New York-based journalist with over ten years of experience. His beats have included education, immigration, labor, criminal justice and climate. Her work in K-12 education is award-winning and she has been recognized multiple times by the California News Publishers Association. She is a recent graduate of Columbia Journalism School, where she was a Toni Stabile Investigative Fellow. While earning her master’s degree, she relied on her extensive knowledge of local journalism to report stories at the city, state and country level. Her work includes a story about Harlem’s last assisted living facility for people living with HIV/AIDS; a profile on New York State’s first Farmers Union; and a database of deaths in the Milwaukee County Jail. She is also the recipient of other scholarships and fellowships from several notable organizations in the news industry, including the Asian American Journalists Association (AAJA), Association of Alternative Newsmedia (AAN), ProPublica, and the Journalism and Women Symposium ( JAWS).